After Graduation,you Plan to Work for Dynamo Corporation for 12

question 81

Multiple Choice

After graduation,you plan to work for Dynamo Corporation for 12 years and then start your own business.You expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12) .The first deposit will be made a year from today.In addition,your grandfather just gave you a $37,500 graduation gift which you will deposit immediately (t = 0) .If the account earns 9% compounded annually,how much will you have when you start your business 12 years from now?

• A) $372,417
• B) $309,826
• C) $312,955
• D) $359,899
• E) $334,862

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Definitions:

Required Disclosures

Information that organizations are legally obligated to make available to stakeholders, often relating to financial, operational, or ethical matters.

Fixed Asset

Long-term tangible property owned by a business that is used in its operations to generate income, such as buildings, machinery, and equipment.

Operating Reserves

Funds set aside by an organization to cover future expenses or emergencies, contributing to financial stability and operational resilience.

Physical Assets

Tangible or material assets such as property, equipment, and inventory owned by a business or individual.